Electric Vehicle Sensor Market Size, Share, and Trends 2024 to 2033

Electric Vehicle Sensor Market Size and Forecast

The global electric vehicle sensor market size was USD 13.12 billion in 2023, calculated at USD 15.11 billion in 2024 and is expected to reach around USD 53.75 billion by 2033. The market is expanding at a solid CAGR of 15.14% over the forecast period 2024 to 2033. The rise in adoption of electric vehicles due to the rising concern about the depleting fossil fuels and environmental pollution that accelerate the demand for the market.

Electric Vehicle Sensor Key Takeaways

• Asia Pacific dominated the market with the highest market share in 2023.
• Europe is observed to grow at a significant rate during the forecast period.
• By product type, the temperature sensor segment dominated the market with the largest market share in 2023.
• By propulsion type, the battery electric vehicles segment projected the largest market share in 2023.

Market Overview

Sensors are technologically advanced electronic devices that are used in advanced cars. Sensors are one of the essential parts of the electric vehicle, it can used to monitoring the various parameters in the vehicles such as coolant system, temperature, obstacles, faults, and alerting driver and signaling to the ECU (electronic control unit) to take informed decisions. The adoption of electronic vehicles by the population due to the rising concern towards the increasing carbon footprint in the environment that directly impacting the demand for the electric vehicle sensors that plays an important role in the safety of and performance of vehicle. Thus, all these factors are driving the growth of the electric vehicle market.

Electric Vehicle Sensor Market Trends

• Electric cars sales hit nearly 14 million in 2023, in which 95% of from China, Europe, and the United States.
• There are 250,000 new registrations per week in 2023, that is the combined annual total of 2013.
• The new electric cars registration in China is reached 8.1 million in 2023 with the 35% increase compared to the 2022.
• The registration of the electric cars in India is 80,000 with the growth of 10% for total car sales and 70% year-on-year registration.
• The registration of new electric cars in the United States reached 1.4 million in 2023 with the 40% increase compared to 2022.
• Europe registered 3.2 million new electric cars in 2023 with about 20% increases than the 2022.

Electric Vehicle Sensor Market Growth Factors

• The evolution of the automobile industry and the integration of technological advancements such as artificial intelligence, IoT, sensors, and others for the enhancement of efficiency of the vehicles that drives the growth of the market.
• The adoption of sensors in electric vehicle for detecting the several applications of the vehicles such as controlling speed, temperature of vehicle, pressure of oil, coolant level that helps in reducing the oil consumption and increases the efficiency of the vehicles that boosts the growth of the electric vehicle sensor market.
• The rising concern about the global warming caused by the gasoline vehicles which emits the heavy amount of carbon in the environment that driving the demand for the sustainable and environment friendly vehicles that drives the adoption of the electric vehicles.
• The rising investment in the development of electric vehicle infrastructure and the further innovation in technologies such as integration of AI, sensors, IoT, ML, and others into the electric vehicles that drives the demand for the market.
• The increasing investment by the major market players for the production and the technological integration in the electric vehicles are contributing in the growth of the electric vehicle sensor market.

Electric Vehicle Sensor Market Scope

Electric Vehicle Sensor Market Dynamics

Driver

Rising popularity of benefits associated with the automotive sensors

Sensors are one of the essential parts of the electric vehicles used in monitoring and measuring the safety standards and enhancing the performance of the car. Sensors are critical to supporting the advanced driver assistance system (ADAS), battery and thermal management, and personalizing in-cabin experiences. Sensors play a crucial role in the ADAS facilities in several automated functions such as lane-keeping assistance, adaptive cruise control, collision avoidance, emergency braking, and total safe driving.

It helps enhance safety systems, including object detection capabilities and high-resolution 3D mapping. Sensors are used in road signals and signs; they detect and identify road signs, traffic lights, and cones to help comply with traffic laws and adopt dynamic road conditions. Furthermore, it determines the lane boundaries, traffic, pedestrians, and parking. The complex motion sensors on electric vehicles also deliver tailored, seamless in-cabin experiences, such as gesture recognition sensors providing passenger and driver touch-less infotainment interaction. Thus, all these benefits are accelerating the electric vehicle sensor market adoption.

Restraint

High cost of production

EV sensors are essential for the optimal functioning of various systems in electric vehicles, including battery management, autonomous driving, safety features, and more. These sensors require cutting-edge technology and materials, which are often expensive to develop and produce. The high precision and reliability needed for these sensors further add to their production costs. The higher cost of electric vehicles as compared to gasoline vehicles due to the integration of modern tools and technologies in electric vehicles are limiting the expansion of the electric vehicle sensor market.

Opportunity

Rising competition in the electric vehicle market

The increasing development in the automobile industry and the demand for environmentally friendly and sustainable mobility options drive the demand for electric vehicles. The rising concern about global warming is due to the increasing number of gasoline-based vehicles that release many carbon footprints into the environment and the primary cause of the rising global warming that anticipated the higher demand for electric vehicle adoption. The growing intervention of the major automobile players in the EV segment, considering the preference change in the population and the trends towards sustainability, drives the market for electric vehicles. The rising demand for electric cars drives the demand for the associated technologies such as IoT, sensors, AI, and others, further contributing to the growth opportunity in the electric vehicle sensor market.

Product Type Insights

The temperature sensor segment dominated the electric vehicle sensor market with the largest market share in 2023. The segment is expected to sustain its position in the market during the forecast period. Temperature sensors are one of the vital parts of electric vehicles; they are used to monitor and control the car's inner temperature and ensure the vehicle's safety and performance. The temperature sensor is the mandatory technology widely adopted by electric cars. Thus, the rising demand for electric vehicles and the increasing competition in automobile manufacturing firms drive the demand for temperature sensors.

The motion sensor segment is observed to grow at a significant rate in the electric vehicle sensor market during the forecast period. The integration of Internet of Things (IoT) technology in EVs is enhancing vehicle connectivity and smart functionalities. Motion sensors play a vital role in these connected systems by providing real-time data on vehicle dynamics, which can be used for various applications, including predictive maintenance and real-time traffic updates.

The overall growth of the EV market is a significant factor driving the demand for motion sensors. As more consumers and businesses adopt electric vehicles, the demand for all associated components, including motion sensors, increases. The global shift towards sustainable and environmentally friendly transportation solutions is accelerating the adoption of EVs and, consequently, the motion sensor market.

Propulsion Type Insights

The battery electric vehicles segment held the largest share in the electric vehicle sensor market in 2023. The battery electric vehicles is generally known as the electric vehicles with the fully electric power grid and with no other type of combustion technology. It has the fully rechargeable batteries that is all the energy comes for operating the vehicle is come from the battery packed power engine. Battery electric vehicles are continuously rising its market due to the changing preference of population to the sustainability and eco-friendly mobility solution. The battery electric vehicles are the major consumer of sensors due to monitoring and ensuring the safety of the vehicle, pressure and temperature control in the vehicle, and other important operations in the vehicle. Thus, the rising adoption of the electric vehicles battery and rising manufacturing unit for the electric vehicles are driving the growth of the market.

Regional Insights

Asia Pacific dominated the electric vehicle sensor market with the largest market share in 2023. The growth of the market is attributed to the rising demand for the electric vehicles in the countries like China, India, and Japan due to the rising concern about the environmental impacts of the vehicles emitting carbon pollution and the stringent regulation regarding the pollution and environmental safety standards. The rising population in the region is one of the major contributors in the expansion of the automotive industry that also drives the EV market in the regional countries. Additionally, the higher availability of the major automobile firms in the regional countries and the ongoing investment by the foreign players in the automobile market is further contributing in the growth of the electric vehicle sensor market.

How China Plays Pivotal Role in the Market’s Expansion?

The Chinese government has implemented a range of policies and incentives to promote the adoption of electric vehicles (EVs). These include subsidies for EV buyers, tax exemptions, and investments in charging infrastructure. These policies have significantly boosted the demand for EVs and, consequently, the market for EV sensors.

• China is the largest consumer of the plug-in electric car market representing the largest sale of the plug-in electric cars. The share of rechargeable cars in China is 37% in 2023.
• In December 2023, there were 362,000 units registered, and more than 8 million plug-in electric cars were registered in China with the increase of 46% year on year.

Europe is expected to surge its growth in the electric vehicle sensor market during the forecast period. The automotive market is showing a substantial growth in the electric vehicle segment due to the shifting preferences towards the electric vehicle by the population. The further investment in the technological advancement in the automobile sector is driving the integration of AI, sensors, IoT, and other technologies in the electric vehicles that drives the growth of the electric vehicles sensor market in the region.

Electric Vehicle Sensor Market Companies

• Melexis
• Continental AG
• NXP Semiconductors
• Valeo
• Robert Bosch
• Venture Capital GmbH
• Denso Corporation
• Renesas Electronics
• Panasonic
• Sensate Technologies Inc.
• Amphenol Advanced Sensors

Recent Developments

• In May 2022, Continental is expanding its range of sensor portfolio with the launch of its two latest electric vehicle sensors the Battery Impact Detection (BID), and the Current Sensor Module (CSM) system with the technology for protecting battery or on battery parameter retention.
• In June 2024, Planet Electric, a Delhi-based automobile startup is planning to introduce its first electric vehicle. The company is claiming the integration of industries first weight sensor telematics system which will provide real-time updates on cargo weight, and responds to the vehicle’s driving range.
• In October 2023, NVIDIA comes in the strategic partnership with the Foxconn to launch the next wave of intelligent electric vehicle (EV) platforms for the worldwide automotive market. 
• In January 2024, Texas Instruments (TI) is launched the latest semiconductor design the AWR2544 77GHz mm-wave radar sensor chip, the first satellite radar architectures allows increase level of autonomy by enhancing sensor fusion and decision making in ADAS.
• In November 2023, United Safety & Survivability Corporation, a leading player in the advanced safety solutions is launched the new innovation, a Lithium-Ion Battery Failure Detection Sensor for transforming the safety standards of the electric vehicles across industries.
• In April 2023, Volvo, a leading automaker is starts its production of its EX90 electric vehicles with the integration of laser sensors to enhancing safety and self-driving features in the EX90. With enabling the EX90 will become the first consumer vehicle to standardize this technology.

Segments Covered in the Report

By Product Type

• Temperature Sensors
• Motion Sensors
• Pressure Sensors
• Speed Sensors
• Gas Sensors

By Propulsion

• Hybrid electric Vehicle (HEVs)
• Plug-in Hybrid Electric Vehicle (PHEVs)
• Battery Electric Vehicle (BEVs)

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa